Illinois 96th Regular Session Status: Enacted

SB 253 — CONVEY-PRED LENDING-MTGE RIDER

Last action — Public Act . . . . . . . . . 96-0854

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced February 04, 2009. Enacted.

Prognosis

Likely to advance 76% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 4 sponsors

    0 primary, 4 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 3 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

Amends the Conveyances Act. Provides that every mortgage securing residential real estate shall have attached a rider, certified by the mortgage lender, that states the name of each participant in the origination of the mortgage, the participant's applicable license or registration number, if any, and the participant's function by using these function categories: mortgage origination company; loan officer; appraiser; real estate broker for the seller, real estate broker for the buyer, lender funding the mortgage; and title insurance company. Provides that a mortgage on residential real estate that is subject to the Illinois predatory lending database pilot program must have attached to it a certificate of compliance or a certificate of exemption issued pursuant to that program.

Bill Text

What changed in the latest version

87 added · 71 removed

Plain-language change summary

The updated version of Bill SB 253 adds a new section that establishes a "Homeownership Preservation Program." This program aims to help homeowners by allowing them to refinance or restructure their mortgages to avoid default or foreclosure, which is crucial as it provides support during financial difficulties. The amendment replaces a section relating to mortgage documentation, removing specific formatting requirements for mortgage forms. This change simplifies the paperwork process, making it easier for people to navigate mortgage transactions.

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SB0253 Engrossed LRB096 03546 AJO 13571 b AN ACT concerning property.
SB0253 Enrolled LRB096 03546 AJO 13571 b AN ACT concerning property.
The Conveyances Act is amended by changing Section 11 as follows:
The Mortgage Escrow Account Act is amended by adding Section 6.5 as follows:
(765 ILCS 5/11) (from Ch.
(765 ILCS 910/6.5 new) Sec.
30, par.
6.5.
10) Sec.
Homeownership preservation program.
11.
(a) For purposes of this Section, "Homeownership Preservation Program" means (1) a program that is expressly intended to assist homeowners by refinancing or restructuring existing mortgage obligations either (i) to avoid default or foreclosure, or both, or (ii) to lower interest rates, and that is sponsored by a federal, state, or local government authority or a non-profit organization;
Mortgages of lands may be substantially in the following form:
or (2) a lender-sponsored program that is expressly intended to assist homeowners by restructuring existing mortgage obligations to avoid default or foreclosure, or both.
The Mortgagor (here insert name or names), mortgages and warrants to (here insert name or names of mortgagee or mortgagees), to secure the payment of (here recite the nature and amount of indebtedness, showing when due and the rate of interest, and whether secured by note or otherwise), the following described real estate (here insert description thereof), situated in the County of ...., in the State of Illinois.
"Subprime Mortgage Lender" means a mortgage lender that has, for at least 2 of the prior 3 reporting years, reported the rate spread, as required under 12 C.F.R.
Dated (insert date).
§ 203.4(a)(12), for at least 75% of the loans reported by the mortgage lender SB0253 Enrolled - 2 - LRB096 03546 AJO 13571 b in the Loan/Application Register filed in compliance with the federal Home Mortgage Disclosure Act, 12 U.S.C.
(signature of mortgagor or mortgagors) The names of the parties shall be typed or printed below the signatures.
2801 et seq., and implementing Regulation C, 12 C.F.R.
Such form shall have a blank space of 3 1/2 inches by 3 1/2 inches for use by the recorder.
201 et seq.
However, the failure to comply with the requirement that the names of the SB0253 Engrossed - 2 - LRB096 03546 AJO 13571 b parties be typed or printed below the signatures and that the form have a blank space of 3 1/2 inches by 3 1/2 inches for use by the recorder shall not affect the validity and effect of such form.
(b) Section 6 shall not apply:
Such mortgage, when otherwise properly executed, shall be deemed and held a good and sufficient mortgage in fee to secure the payment of the moneys therein specified;
(1) to a mortgage loan made by a subprime mortgage lender in compliance with the requirements for higher-priced mortgage loans established in Regulation Z 12 C.F.R.
and if the same contains the words "and warrants," the same shall be construed the same as if full covenants of ownership, good right to convey against incumbrances of quiet enjoyment and general warranty, as expressed in Section 9 of this Act were fully written therein;
Part 226, issued by the Board of Governors of the Federal Reserve System to implement the federal Truth in Lending Act, whether or not the mortgage loan is a higher-priced mortgage loan, provided that:
but if the words "and warrants" are omitted, no such covenants shall be implied.
(A) for loans that are not higher-priced mortgage loans, the escrow account must be terminated upon the borrower's request at no cost to the borrower;
When the grantor or grantors in such deed or mortgage for the conveyance of any real estate desires to release or waive his, her or their homestead rights therein, they or either of them may release or waive the same by inserting in the form of deed or mortgage (as the case may be), provided in Sections 9, 10 and 11, after the words "State of Illinois," in substance the following words, "hereby releasing and waiving all rights under and by virtue of the homestead exemption laws of this State." Mortgages securing "reverse mortgage" loans shall be subject to this Section except where requirements concerning the definiteness of the term and amount of indebtedness provisions of a mortgage would be inconsistent with the Acts authorizing "reverse mortgage" loans, or rules and regulations SB0253 Engrossed - 3 - LRB096 03546 AJO 13571 b promulgated under those Acts.
and (B) for loans that are higher-priced mortgage loans, the escrow account must be terminated upon the borrower's request at no cost to the borrower on terms no stricter than the following conditions:
A mortgage securing "residential real estate" as defined in the Residential Mortgage License Act of 1987 shall have attached a rider, certified by the mortgage lender, that states the name of each participant in the origination of the mortgage, the participant's applicable license or registration number, if any, and the participant's function in the origination of the mortgage by using these function categories:
(i) the escrow termination requirements established in Regulation Z are satisfied;
(i) mortgage origination company;
(ii) the borrower has maintained a satisfactory payment history (no payments more than 30 days late) for the 12 months prior to the mortgage lender's receipt of the borrower's termination request;
(ii) loan officer;
and (iii) the borrower has reimbursed the mortgage SB0253 Enrolled - 3 - LRB096 03546 AJO 13571 b lender for any escrow advances or escrow deficiencies existing at the time of the borrower's termination request.
(iii) appraiser holding a license pursuant to the Real Estate Appraiser Licensing Act of 2002;
(2) to a refinance or modification made by a subprime mortgage lender under a homeownership preservation program that requires establishment of an escrow account as a condition or requirement of the refinance or modification, provided that the escrow account must be terminated upon the borrower's request at no cost to the borrower on terms no stricter than the following conditions:
(iv) "real estate broker", as defined in the Real Estate License Act of 2000, representing the seller;
(A) termination is permitted under the terms of the government or non-profit sponsored homeownership preservation program, if applicable, and the borrower complies with all conditions or requirements for termination established by or allowed under such program;
(v) real estate broker representing the buyer;
(B) the borrower has maintained a satisfactory payment history (no payments more than 30 days late) for the 12 months prior to the mortgage lender's receipt of the borrower's termination request;
(vi) lender funding the mortgage;
and (C) the borrower has reimbursed the mortgage lender for any escrow advances or escrow deficiencies existing at the time of the borrower's termination request.
and (vii) title insurance company (preparing the HUD-1 form).
Termination may not be denied for failure to reimburse escrow advances or escrow deficiencies under item (iii) of SB0253 Enrolled - 4 - LRB096 03546 AJO 13571 b subparagraph (B) of paragraph (1) of subsection (b), or subparagraph (C) of paragraph (2) of subsection (b) if the borrower claims, in writing, that there is an error with such advances or deficiencies.
Mortgages on residential real estate that are subject to the Illinois predatory lending database pilot program pursuant to the Residential Real Property Disclosure Act must have attached a certificate of compliance or a certificate of exemption issued pursuant to the program.
In such case, the lender must terminate the escrow account if all other conditions of termination are satisfied;
Mortgages securing "revolving credit" loans shall be subject to this Section.
however, such termination will not alter or affect any other rights of the mortgage lender or the borrower with respect to the collection of such escrow advances or escrow deficiencies.
(Source:
Section 99.
P.A.
Effective date.
91-357, eff.
This Act takes effect upon becoming law.
7-29-99.)
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Action History

  1. Public Act . . . . . . . . . 96-0854

  2. Effective Date December 31, 2009

  3. Governor Approved

  4. Sent to the Governor

  5. Passed Both Houses

  6. House Floor Amendment No. 1 Senate Concurs 059-000-000

  7. House Floor Amendment No. 1 Motion To Concur Recommended Do Adopt Executive; 012-000-000

  8. House Floor Amendment No. 1 Motion to Concur Assignments Referred to Executive

  9. House Floor Amendment No. 1 Motion to Concur Referred to Assignments

  10. House Floor Amendment No. 1 Motion to Concur Filed with Secretary Sen. Terry Link

  11. Placed on Calendar Order of Concurrence House Amendment(s) 1 - October 30, 2009

  12. Secretary's Desk - Concurrence House Amendment(s) 1

  13. Third Reading - Short Debate - Passed 116-000-000

  14. Placed on Calendar Order of 3rd Reading - Short Debate

  15. House Floor Amendment No. 1 Adopted by Voice Vote

  16. Land Conveyance Appraisal Note Requested - Withdrawn by Rep. Eddie Washington

  17. Housing Affordability Impact Note Requested - Withdrawn by Rep. Eddie Washington

  18. Home Rule Note Requested - Withdrawn by Rep. Eddie Washington

  19. Fiscal Note Requested - Withdrawn by Rep. Eddie Washington

  20. Alternate Chief Co-Sponsor Changed to Rep. Eddie Washington

  21. Added Alternate Chief Co-Sponsor Rep. Eddie Washington

  22. Added Alternate Co-Sponsor Rep. Elizabeth Hernandez

  23. Added Alternate Co-Sponsor Rep. Edward J. Acevedo

  24. Added Alternate Co-Sponsor Rep. Cynthia Soto

  25. House Floor Amendment No. 1 Recommends Be Adopted Financial Institutions Committee; 022-000-000

  26. House Floor Amendment No. 1 Rules Refers to Financial Institutions Committee

  27. Added Alternate Chief Co-Sponsor Rep. Joseph M. Lyons

  28. House Floor Amendment No. 1 Referred to Rules Committee

  29. House Floor Amendment No. 1 Filed with Clerk by Rep. Angelo Saviano

  30. Final Action Deadline Extended-9(b) November 30, 2009

  31. Final Action Deadline Extended-9(b) May 31, 2009

  32. Land Conveyance Appraisal Note Requested by Rep. Eddie Washington

  33. Housing Affordability Impact Note Requested by Rep. Eddie Washington

  34. Home Rule Note Requested by Rep. Eddie Washington

  35. Fiscal Note Requested by Rep. Eddie Washington

  36. Final Action Deadline Extended-9(b) May 29, 2009

  37. Held on Calendar Order of Second Reading - Short Debate

  38. Second Reading - Short Debate

  39. Placed on Calendar 2nd Reading - Short Debate

  40. Do Pass / Short Debate Financial Institutions Committee; 018-000-003

  41. Assigned to Financial Institutions Committee

  42. Referred to Rules Committee

  43. First Reading

  44. Chief House Sponsor Rep. Angelo Saviano

  45. Placed on Calendar Order of First Reading

  46. Arrived in House

  47. Third Reading - Passed; 055-000-002

  48. Placed on Calendar Order of 3rd Reading April 1, 2009

  49. Second Reading

  50. Placed on Calendar Order of 2nd Reading March 17, 2009

  51. Do Pass Financial Institutions; 011-000-000

  52. Held in Financial Institutions

  53. Added as Chief Co-Sponsor Sen. Jacqueline Y. Collins

  54. Postponed - Financial Institutions

  55. Assigned to Financial Institutions

  56. Referred to Assignments

  57. First Reading

  58. Filed with Secretary by Sen. Terry Link

Sponsors

  • Lisa Hernandez · Cosponsor
  • Terry Link · Cosponsor
  • Cynthia Soto · Cosponsor
  • Edward J. Acevedo · Cosponsor

Sponsorship breakdown

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0 sponsors · 4 co-sponsors · 179 not signed on

Sponsors (0)

None.

Co-sponsors (4)

Not signed on (179)

179 members have not signed on to this bill.

Show all 179 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Concurrence, Amendment 1

Passed 59 Yea · 0 Nay
Party YeaNayPresentNot Voting
Democrat 9000
Unaffiliated 49000
Republican 1000
Total 59000
% of votes cast 100%0%0%0%
How each member voted (59)
Member Party Vote
Hendon — Yea
Hultgren — Yea
Lauzen — Yea
Luechtefeld — Yea
McCarter — Yea
Muñoz — Yea
Noland — Yea
Demuzio — Yea
Pankau — Yea
Jacobs — Yea
Radogno — Yea
Schoenberg — Yea
Silverstein — Yea
Jones, J. — Yea
Steans — Yea
Brady — Yea
Sullivan — Yea
Trotter — Yea
Viverito — Yea
Wilhelmi — Yea
Cullerton — Yea
Clayborne — Yea
Cronin — Yea
Crotty — Yea
Dillard — Yea
Forby — Yea
Frerichs — Yea
Haine — Yea
Hutchinson — Yea
Dahl — Yea
DeLeo — Yea
Kotowski — Yea
Raoul — Yea
Righter — Yea
Risinger — Yea
Rutherford — Yea
Sandoval — Yea
Link — Yea
Maloney — Yea
Althoff — Yea
Martinez — Yea
Bivins — Yea
Bomke — Yea
Bond — Yea
Burzynski — Yea
Meeks — Yea
Millner — Yea
Duffy — Yea
Garrett — Yea
David Koehler Democrat Yea
Don Harmon Democrat Yea
Emil Jones, III Democrat Yea
Eva-Dina Delgado Democrat Yea
Kimberly A. Lightford Democrat Yea
Lakesia Collins Democrat Yea
Laura M. Murphy Democrat Yea
Linda Holmes Democrat Yea
Mattie Hunter Democrat Yea
Dave Syverson Republican Yea

Official roll call →

Third Reading

Passed 116 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 102001
Democrat 11000
Republican 3001
Total 116002
% of votes cast 98%0%0%2%
How each member voted (118)
Member Party Vote
Jefferson — Yea
Davis, Monique — Yea
Lang — Yea
Reitz — Yea
Leitch — Yea
McAuliffe — Yea
McCarthy — Yea
Mell — Yea
Mendoza — Yea
Moffitt — Yea
Lyons — Yea
Mulligan — Yea
Myers — Yea
Soto — Yea
Thapedi — Yea
Tryon — Yea
Turner — Yea
Verschoore — Yea
Wait — Yea
Bradley — Yea
McGuire — Yea
Brady — Yea
Sullivan — Yea
Burke — Yea
Mitchell, Bill — Yea
Mitchell, Jerry — Yea
Gordon, Jehan — Yea
Cavaletto — Yea
Coladipietro — Yea
Cole — Yea
Dugan — Yea
Dunkin — Yea
Durkin — Yea
Eddy — Yea
Farnham — Yea
Flider — Yea
Flowers — Yea
Fortner — Yea
Franks — Yea
Fritchey — Yea
Froehlich — Yea
Golar — Yea
Graham — Yea
Hamos — Yea
Kosel — Yea
Hannig — Yea
Harris — Yea
Madigan — Yea
Watson — Yea
Hernandez — Yea
Nekritz — Yea
Howard — Yea
Phelps — Yea
Pihos — Yea
Gordon, Careen — Not Voting
Washington — Yea
Winters — Yea
Yarbrough — Yea
Zalewski — Yea
Colvin — Yea
Connelly — Yea
Coulson — Yea
Cross — Yea
Cultra — Yea
Currie — Yea
D'Amico — Yea
Hatcher — Yea
Holbrook — Yea
Jackson — Yea
Jakobsson — Yea
Osmond — Yea
Osterman — Yea
Poe — Yea
Pritchard — Yea
Ramey — Yea
Reboletti — Yea
Reis — Yea
Riley — Yea
Sacia — Yea
Saviano — Yea
Schmitz — Yea
Senger — Yea
Sente — Yea
Sommer — Yea
Acevedo — Yea
Arroyo — Yea
Bassi — Yea
Beaubien — Yea
Beiser — Yea
Bellock — Yea
Mathias — Yea
Berrios — Yea
Biggins — Yea
Mautino — Yea
Black — Yea
Boland — Yea
May — Yea
Bost — Yea
Brauer — Yea
Brosnahan — Yea
Burns — Yea
McAsey — Yea
Chapa LaVia — Yea
Anthony DeLuca Democrat Yea
Fred Crespo Democrat Yea
Jay Hoffman Democrat Yea
La Shawn K. Ford Democrat Yea
Lakesia Collins Democrat Yea
Mark L. Walker Democrat Yea
Nicholas K. Smith Democrat Yea
Patrick J. Joyce Democrat Yea
Robert "Bob" Rita Democrat Yea
Sara Feigenholtz Democrat Yea
William "Will" Davis Democrat Yea
Brad Stephens Republican Not Voting
Chapin Rose Republican Yea
Chris Miller Republican Yea
Jil Tracy Republican Yea

Official roll call →

Third Reading

Passed 55 Yea · 0 Nay · 4 Other
Party YeaNayPresentNot Voting
Democrat 9000
Unaffiliated 45004
Republican 1000
Total 55004
% of votes cast 93%0%0%7%
How each member voted (59)
Member Party Vote
Hultgren — Yea
Kotowski — Yea
Link — Yea
Maloney — Yea
McCarter — Yea
Meeks — Yea
Millner — Yea
Demuzio — Yea
Noland — Yea
Radogno — Yea
Schoenberg — Yea
Silverstein — Yea
Munoz — Yea
Jones, J. — Yea
Steans — Yea
Brady — Yea
Sullivan — Yea
Trotter — Yea
Viverito — Yea
Wilhelmi — Yea
Cullerton — Not Voting
Jacobs — Not Voting
Clayborne — Yea
Cronin — Yea
Crotty — Yea
Dahl — Not Voting
DeLeo — Not Voting
Dillard — Yea
Duffy — Yea
Forby — Yea
Frerichs — Yea
Garrett — Yea
Haine — Yea
Hendon — Yea
Hutchinson — Yea
Pankau — Yea
Raoul — Yea
Righter — Yea
Risinger — Yea
Rutherford — Yea
Sandoval — Yea
Lauzen — Yea
Luechtefeld — Yea
Althoff — Yea
Martinez — Yea
Bivins — Yea
Bomke — Yea
Bond — Yea
Burzynski — Yea
David Koehler Democrat Yea
Don Harmon Democrat Yea
Emil Jones, III Democrat Yea
Eva-Dina Delgado Democrat Yea
Kimberly A. Lightford Democrat Yea
Lakesia Collins Democrat Yea
Laura M. Murphy Democrat Yea
Linda Holmes Democrat Yea
Mattie Hunter Democrat Yea
Dave Syverson Republican Yea

Official roll call →

Subjects

finance housing
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Frequently asked questions

What does SB 253 do?
Amends the Conveyances Act. Provides that every mortgage securing residential real estate shall have attached a rider, certified by the mortgage lender, that states the name of each participant in the origination of the mortgage, the participant's applicable license or registration number, if any, and the participant's function by using these function categories: mortgage origination company; loan officer; appraiser; real estate broker for the seller, real estate broker for the buyer, lender funding the mortgage; and title insurance company. Provides that a mortgage on residential real estate that is subject to the Illinois predatory lending database pilot program must have attached to it a certificate of compliance or a certificate of exemption issued pursuant to that program.
Who sponsors SB 253?
SB 253 is sponsored by Hernandez, Lisa, Terry Link, Cynthia Soto, and Edward J. Acevedo.
What is the current status of SB 253?
This bill has been enacted into law. Introduced February 04, 2009. Enacted.
Where can I track SB 253?
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